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Marta Stewart Case Study

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Investors were worried that this would put a bad image over Martha’s reputation and in turn would stop buying Martha’s products. They also saw it as Martha Stewart was the brains behind MSO and if she went to jail where would the ideas come from to keep the company going? So reduced profits mean that investors will be less likely to pay less for the shares.

Martha’s Stewart’s target market is made of up women and men alike who are interested in good product but also interested in the Martha’s reputation and character. They like her for who she is and therefore like her product. You wouldn’t be buying a product from her if she wasn’t a savvy business woman who knew her product. She identifies with the homemakers who are interested in the good wholesome value products.

7. yes. If she would have just responded to the charges to begin with and been upfront in the investigation she would looked innocent. She seemed like she was guilty the whole time because she kept scooting around the questions and even kept her cell phone records. Why not let them have them?
8. She could have provided her cell phone records. She could have donated the $45K to charity. If she really did have a agreement with her broker to sell if it dropped, then produce an email. Usually these types of things are in some from of an agreement.
9. It is simple that it is unfair. Why should other people have privileged information before someone else? Why should someone else become richer while others lose money? It also shows investment markets to be unfair and not to be trusted, so this causes other investors to not want to invest.

10. No, you should not. There would be an appearance of conflict of interest. I don’t owe this person anything and it could get myself or my friend in trouble.

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